Revenue is the amount of money they are taking in. However, this doesn’t account for all of their expenses. The owner still has to pay rent, pay their workers, and buy merchandise. The revenue minus the expenses is the net profit. $2000 dollars is not a lot per month. That revenue, minus all the expenses, could create a loss, in which the Foot Locker costs more to run than the revenue they are bringing in. If the expenses are $3000 per month, the owner has a loss of $1000 per month. Having a loss like that makes it hard to keep the business open because there just isn’t enough money to run it.
